The section is based on Jonasen (1990), Plovsing (1998), Mossin (2003), and especially Bengtsson (2002).
Disability benefit 1891
A poverty law was introduced. The disabled could obtain support without loss of civil rights supported poor otherwise suffered and (presumably) with less work requirement.
An old-age law was also introduced. People with ‘deserving needs’ who reached the age of 60 could obtain benefit.
1922
The first law with the label ‘disability benefit’ came into force. (The law was similar to the rules that prevailed in Southern Jutland. Southern Jutland joined Denmark in 1920.) Disability benefit partly replaced support according to the poverty law. To minimize unintended use of the scheme, the level of the benefit was low and the medical judgment strong. In order to claim the pension, at least 2/3 of work ability should be lost. The law on disability benefit aimed at putting more weight on principles of law.
1965
The single level of disability benefit was replaced with three levels (the structure was still found in 2002, cf. section 2.1). To obtain the lower benefit, work ability should
‘only’ be reduced 50 percent. Accordingly, the lower level of benefit was not sufficient to maintain a living.
Due to the reform, a larger proportion of the population became eligible. Furthermore, the real value increased significantly.
1984
Several schemes were now gathered in ’disability benefit’. This included widow’s pen-sion and certain schemes for early old-age penpen-sion. With the reform, disability benefit was no longer awarded solely on the basis of medical judgment. The lower benefit level was increased and divided into two to form the structure described in section 2.1.
Finally, from 1984 disability could be awarded to individuals aged 18.
1992
Reform of cost sharing. Prior to 1992, the central government paid 50 percent of the social assistance, 75 percent of rehabilitation, and 100 percent of disability benefit. This gave the municipalities’ an economic incentive to granting disability benefit rather than the two forms of temporary help. From 1992, the central government paid 50 percent of all types of assistance.
1998
Introduction of flex-jobs and light jobs. In accordance with widespread ideas of work-fare, flex-jobs were introduced as a means to test applicants’ work ability and as a tool
to reintegrate people into the ordinary labour market or as permanent jobs for the disabled. The scheme was not entirely new, as schemes for wage-subsidized jobs had already existed for some years. The central government pays the wage-subsidy for people in flex-job.
1999
Reform of cost sharing. The central government’s part of the cost was now reduced from 50 percent to 33 percent whereas it continued to reimburse 50 percent of the cost for social assistance and reha bilitation.
Related schemes 1856
A law regarding the poverty fund was introduced. Help from the fund was intended to be small (and presumably only temporary) and aimed at preventing beneficiaries from becoming dependant on regular poor relief (with loss of civil rights, confinement to poorhouses, and a risk of permanent social exclusion).
1907
State subsidy to unemployment insurance funds. The poverty fund was renamed the help fund.
1922
The old-age benefit became a fixed amount rather than based on judgment. The age limit was raised to 65 years.
1933
The help fund was replaced with a law for social assistance. Membership of sickness insurance funds became mandatory.
1937
Age limit for old-age benefit was reduced to 60 years (to reduce unemployment).
1946
Old-age benefit limit became 65 years (again).
1959
Widow’s pension was introduced. Early old-age pension was introduced.
1960
Law on rehabilitation. Rehabilitation could be obtained for social reasons as well as medical reasons.
1961
Reform of widow’s pension. More weight was put on social reasons.
1965
1967
A similar reform for early old-age pension with weight on social conditions.
1973
The level of unemployment insurance benefit was raised for people with low income and maximum duration increased. (In practice it may be argued, duration became infi-nite since participants in activation programmes regained entitlement to unemployment insurance benefit.)
1976
A reform of social assistance.
1979
Early retirement pension. The scheme described in section 2.3 and appendix 1 was in-troduced. During 1979-1998, the scheme was different from the description in appendix 1. Early retirement was open for people aged 60-66 who had been members of an un-employment fund. In opposition to the current scheme, the scheme had no similarity with a private savings account.
1992-1996
Early retirement pension was opened to the long-term unemployed aged 55-59.
1994-1996
Early retirement pension was opened to the long-term unemployed aged 50-54.
1999
Reform of early retirement scheme. The early retirement scheme was changed as de-scribed in appendix 1. The age for old-age pension was reduced from 67 to 65.
1994
Maximum duration of unemployment insurance benefit was fixed to 7 years. Benefici-aries cannot regain entitlement to a new 7-year period through activation programmes.
Activation started within 4 years. Activation for recipients of social assistance starts within a year.
1996
Unemployment insurance benefit maximum duration was 5 years. Activation started within 3 years.
1998
Unemployment insurance benefit maximum duration was 4 years. Activation started within 2 years.
1999
Unemployment insurance benefit activation starts within 1 year.
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